This is prompted from a post by 约翰 in the iPhone discussion thread, specifically regarding the merits of a) delving deeply into the etymology of *each* character
b) studying characters more superficially - as in just the definition and being able to produce the writing
I'm personally of the opinion/experience that spending much time on etymology is counterproductive *if your goal is to learn to write characters and read native texts, soon(!)*.
I think there are a lot of interesting concepts and stories and origins and mnemonics and so on for each and every character, but all of these end up being a distraction from a primary goal of learning to understand and communicate effectively using written Chinese. Even learning a ton of radicals is of questionable utility in my opinion, as you will learn the stroke orders and common phonetics of those anyway with enough exposure to common characters, and knowing their exact *definitions* sometimes leads to more confusion, not less, with the characters containing them.
Spending a ton of time on etymology for a few characters means less time learning the plain definition and writing for many more characters, and once you are at a level where written material is accessible that serves as a great quasi-SRS system in itself - anyone that reads a article a day or a couple thousand characters from a book each night will find little benefit from using flashcards with common characters - given that, I think the immediate goal is getting to that level as fast as possible, and then using written material more, and flashcards/Skritter for those really tough/similar characters later on (and even etymology/mnemonics at that point).
Being *extremely* strict with yourself on your preferred flashcard system means you'll spend more time doing flashcards. More so if you're strict with yourself regarding remembering things like the history of the character! My own habits are to be relatively liberal with the use of the "so so" grade - I only use the "incorrect/forgotten" grade in the case that I just *completely* blanked the meaning. I still spend around 30-40 minutes per day using Skritter - and think its time well spent, but I certainly don't want to spend more time on Skritter and less on reading native material.
I just wanted to highlight this because I sometimes get the impression here that some people use Skritter (or more broadly, character acquisition) as their sole means of studying Chinese. As great as I think Skritter is, I think there is a lot of value in knowing when the returns of an additional hour of drilling down on characters are less than the returns of an hour of reading through Chinese text, even using a annotation software like Pleco's reader.
Of course, there are a group who have a strong passion for etymology, or are interested in learning the language only for a interest in characters; I don't mean to say all learners have the same goal and should pursue their goals identically. Also, I will delve into light mnemonics and etymology when I occasional encounter a *very* tough character to remember, but only as a last resort (e.g. a handful out of a couple thousand).